Industrials | Mergers & Acquisitions

NewPage Sells Little Quinnesec Hydroelectric Facility

  • TM Capital acted as exclusive financial advisor to NewPage Corporation in the sale of the 9 MW Little Quinnesec hydroelectric facility to Northbrook Energy and Energy Investors Funds (EIF)
  • NewPage was the largest coated paper manufacturer in North America and a portfolio company of Cerberus Capital Management, L.P.
  • The Little Quinnesec facility was part of NewPage’s Niagara, Wisconsin coated groundwood paper mill
  • NewPage retained TM Capital to seek a buyer for the mill. NewPage planned to shut the mill permanently unless a buyer could be found to operate it on grades other than coated publication papers
  • TM Capital identified the potential value of the hydro facility and focused on running a separate sale process for the asset along with the mill sale
  • The hydro facility historically provided its electricity output to the mill. TM Capital worked with management to develop standalone financials and a plan to operate the hydro facility independently
  • Our efforts resulted in a highly competitive process. NewPage completed the sale of the hydro facility at a price double NewPage’s expectation for the entire mill. TM Capital subsequently sold the Niagara mill site to Niagara Development
  • Northbrook Energy is a privately held company involved in the development, ownership and operation of electric power facilities. EIF was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry